Chapter 7 Bankruptcy

Chapter 7: Transformation Bankruptcy

Chapter 7 bankruptcy is commonly referred to as liquidation bankruptcy because some property can be sold to pay off creditors. At the Louder Law Group, we believe transformation bankruptcy is a more fitting description of Chapter 7's powerful and positive affect on people's lives.

Chapter 7 bankruptcy provides debt relief. It can give you a fresh start, a new beginning. With some exceptions, filing Chapter 7 bankruptcy can eliminate your debts. You will not have to repay them — ever. While credit counseling services can negotiate to lower your credit card debt, only Chapter 7 bankruptcy can make it disappear.

Keep Your Property

Many people mistakenly believe that everything they own will be sold to pay off creditors in a Chapter 7 bankruptcy. In fact, most people are able to keep their homes, cars and other personal assets because their property is either exempt from liquidation or not worth the trouble of selling.

Exempt property includes ordinary household furnishings and appliances, personal effects and clothing and part of the equity in your home or vehicle.

Rebuilt Your Credit Rating

People are sometimes hesitant to file bankruptcy because of its effect on their ability to get credit. Initially, your credit rating will be negatively affected by a bankruptcy. However, you will be able to obtain credit. In fact, bankruptcy is a powerful tool for improving your credit rating over time. We have had clients whose credit ratings were in the 700s within a year or two of filing bankruptcy.

Our Personal Bankruptcy Attorneys Tell You How

Each case is different. Our bankruptcy lawyers can analyze your financial situation and fully describe your options. We can tell you which debts you can walk away from and which you may still have to pay.

Not everyone is eligible to file Chapter7 bankruptcy. If you have too much income or own too many assets, you may need to file Chapter 13 bankruptcy and establish a repayment plan.

Call us to Stop Foreclosures and Repossessions

If you have been threatened with foreclosure on your home or repossession of your vehicle, it is important to contact a bankruptcy attorney at our firm as soon as possible. Filing Chapter 7 bankruptcy can stop these actions against you. The initial consultation is free.

From our offices in Sacramento, we represent clients in bankruptcy throughout Northern California.